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Last week Monday began with the EURUSD on a downtrend. There was a brief halt in slowly declining prices owing to the US presidential election results. Then by Wednesday the EURUSD experienced a surprising increase of 280 pips. But by the end of Wednesday, the pair was already dropping down again thus forming a Bearish Confirmation Pattern. This almost broke past 1.0850; which is a crucial support level. Across the next four days however, the chances are high that prices may break below the support lines located at 1.0850 and 1.0800. But then there is also the strong chance of prices rising up; this is more likely to happen should the USDCHF fall again.

EURJPYPrice Trend: Bullish

There was not big movement in this pair compared to the USDJPY. We saw some choppiness in the market for this pair, yet so far the trend remains an uptrend. Thus we should be expecting bigger gains in this pair should the euro get any stronger this week. We can expect prices to push up to 116.50 and 117.00 which are supply zones. But then it will necessary for us to see sustained pressure from buying for the EURJPY to push above these levels.

[b]GBPUSDPrice Trend: Bullish

Across this week and possibly the next week, the trend remains an uptrend. But if we look farther on the longer term, the price trend becomes bearish. There was quite some zigzag movement in the GBPUSD as the currency pair experienced consolidation for the first four days of last week. For the fact that the immediate trend is an uptrend, it is very possible that prices may rise further across the next four days. With this, we expect the GBPUSD to push up to 1.2650, 1.2700 and 1.2750 (all which are distribution territories). A stronger uptrend will appear on the D1 chart should the GBPUSD managed to rise up more by 500 pips.

USDJPYPrice Trend: Bullish

Just as we had expected, last week we saw strong upward movements in the JPY. This actually commenced last week Wednesday but there was a halt two days later owing to the strong sell-off which resulted in the USDJPY drastically dropping down by about 400 pips. The USDJPY impressively turned around its losses the next day. For now prices are above 106.50 which is a strong demand level. Thus the possibility is strong that this week, prices may push up to the supply levels we have at 107.00, 107.50 and 108.00. Well the trend for most JPY pairs has not changed from an uptrend (except for the NZDJPY and the AUDJPY).

USDCHFPrice Trend: Bullish

For the first two days of last week, there was sideways movement in the USDCHF. But by Wednesday, the pair was already falling notably. The USDCHF managed to record an increase of 290 pips, steadily rising up from a low of 0.9549, this made the trend a stronger uptrend. Across the week, the possibility is high that the USDCHF may push up to the resistance levels located at 0.9900, 0.9950 even up to 1.0000. But more particularly, 1.000 is one crucial resistance level being a very strong psychological level. Thus it is most likely the USDCHF may experience a pullback should prices not be successful at could breaking past 1.000.

This Analysis is brought to you by PROFIFOREXHere is the market outlook for this week:

EURUSDPrice Trend: Bearish

The decline in the EURUSD still stretched across last week - it even went as far as dropping under the resistance lines located at 1.0650 and 1.0600. A strong trend has formed in the EURUSD with the solid decline of over 700 pips for almost two weeks now. For this we can see that it is very likely the EURUSD will keep falling. It could even drop as far as 1.0550, and 1.0500 even dropping down as far as 1.0450 (all these being support levels). This is very possible should the USD maintain its strength.

EURJPYPrice Trend: Bullish

Despite a brief decline we had in the EURJPY by last week Wednesday, the pair has been on the rise. This increase is supported by the pressure brought about by massive buying as well as a weakening Japanese Yen. The weakness of the yen makes it very possible for even the likes of the euro and British Pound to continue making gains against it. As such unless the Japanese yen gets stronger, it is very likely the uptrend will go on even reaching the supply zones located at 118.00 and 118.50 across the week.

GBPUSDPrice Trend: Bearish

Last week, there was very strong bearish correction in the GBPUSD. This led to us seeing signals to sell on the short term and even on the longer term too. The chance of prices pulling up is really low until price action shows a strong forming uptrend. At this point, it is safer selling this currency pair; thus should prices go up, it is only a better opportunity to quickly sell.

USDJPYPrice Trend: Bullish

The USDJPY has gone up by more than 955 pips since the low the USDJPY suffered as at November 9. As of now there is a strong Bullish Confirmation Pattern. This happens to be one of heaviest directional movement in the previous months. With this in mind, we see that the USDJPY could reach supply levels located at 111.00 and 111.50 across this week.

USDCHFPrice Trend: Bullish

There was an increase of 215 pips in the USDCHF last week. With this significant increase, the pair eventually broke past 1.0000 (which is a very crucial psychological level) even rising as far as the resistance level located at 1.0100. Thus the possibility is high that the uptrend would go on. One likely point the USDCHF may climb to is 1.0200 which is a resistance level. Should prices go higher, it is then more likely they will fall down soon. We expect the uptrend to continue so long the USD doesn't suffer any weaknesses.

There was consolidation in prices all through the previous week. Looking closer at the market, we see that there was strong indication that prices may again push up again across this week. We expect the euro to make gains against its major rivals this week. The only exception to this is the dollar getting stronger. This strength of the dollar is expected to run across this week. Thus the EURUSD could aim for 1.0750 and 1.0800 all which are crucial resistance lines.

EURJPY Price Trend: Bullish

Last week, EURJPY experienced an unhindered gain in prices; with prices peaking at 121.88. This helped the EURJPY close below 121.50 which is a vital supply level. So far, there is the possibility of a confirmation pattern in the EURJPY. With this in mind, we are expecting more gains in this pair this week. Movement in the EURJPY could bring the pair to the supply zones located at 122.00, 122.50 and 123.00. Demand zones located at 120.00 and 119.50 would serve as hindrance to big pullbacks in the pair.

USDCHF

Price Trend: Bullish

There was consolidation in this USDCHF last week. We expect a strengthening US dollar across the next four days. The increase in the USDCHF could be threatened however with a strengthening CHF. For the USDCHF, there are very significant resistance levels located at 1.0150 and 1.0200, with support levels seen at 1.0050 and 1.0000.

GBPUSD

Price Trend: Bullish

There was an end to the two-week equilibrium phase last week. This was a very notable break moving up by 330 pips - cutting through 1.2700 (this is an accumulation territory) going on to close above it. This week, we are expecting gains against majors like AUD and NZD, with possible continuity in the increase against the dollar.

USDJPY

Price Trend: Bullish

Last week, the USDJPY had seen an increase of 300 pips. This wholesome increase pushed the USDJPY to test the supply level located at 114.50; the pair failed to move past this. Last week ending, the pair experienced bearish correction, yet this does not however threaten the strength of the uptrend thus we are expecting more gains in the pair across the next four days. It is then possible that the USDJPY may target the supply levels we have at 115.50 and 115.00.

At the beginning of last week, there was an increase of 300 pips in the EURUSD. This increase brought the pair up hitting 1.0850 - which is a resistance line. After this, the direction turned around with a strong decline in prices. By the end of the week, the EURUSD had lost the initial gains it recorded at the beginning of the week. With the decline extending further; pushing the pair down to the support line located at 1.0550. For the next four days, the possibility is high that the pair would keep falling, with a weakening EUR and strengthening USD.

EURJPYDominant bias: Bullish

At the moment, the bullish confirmation pattern in this pair is very clear. Of late, prices had gone up and down but all the same the trend is yet to change from an uptrend. Across this week, prices may reach 122.00, 122.50, even as far as 123.00 (all these being supply zones). The main factor supporting the increase in this pair is the yen that is losing strength. Unless the yen gets stronger, the euro which is actually weak will yet be recording gains against the yen; thus maintaining the uptrend.

GBPUSDPrice Trend: Bearish

On Monday and Tuesday last week, there were gains in the GBPUSD with the pair pushing up to reach the distribution territory located at 1.2750. The pair made commendable attempts to remain above this point but eventually recorded little success; falling below it. This really affected the chances of the pair pulling up. Across the next four days, we expect the GBPUSD to suffer further decline possibly breaking through a couple of accumulation territories. The trend however for most GBP pairs this week is a downtrend.

USDJPYPrice Trend: Bullish

There was a continuation in the consolidation in this pair from Monday to Tuesday last week. But by Thursday, we were already seeing an increase in the pair. The USDJPY so far has recorded an increase of over 1380 pips since the very distinct low the pair had dropped to 9th of last month. The trend continues to be an uptrend as such prices may reach the supply levels located at 115.50, 116.00 and 116.50 across the next four days.

USDCHFPrice Trend: Bullish

For the first three days of last week, there was sideways movement in the USDCHF. But from Thursday, the pair started to record gains strengthening the uptrend. The push brought up prices testing 1.0200, which is a notable resistance level, only to eventually close below it. Across the next four days however, the USDCHF could push up to 1.0250 even rising farther into 1.0300 (both being resistance levels). The possibility is strong that the CHF may push up against a number of its rivals, even attempting to rise against the US dollar.

There was sideways movement in the EURUSD across the first three days of last week. But then in line with expectations, the EURUSD suffered a decline. Prices briefly dropped below 1.0400 (which is a support level). Across the next few days, it is likely prices may continue to fall with the trend being a downtrend. Thus it is possible for prices to fall to 1.0400, 1.0350 even as far as 1.0300. This pointed to the increasing chances of the USD hitting parity with the EUR.

USDJPY

Price Trend: Bullish

According to prediction last week, there was an increase in the USDJPY with the pair pulling above 300 pips after there has been sideways movement in the USDJPY for the first two days of last week. So far in course of the last five weeks, the USDJPY has added over 1650 pips. With the trend being bullish, the increase should stretch on. There is also the possibility of prices getting to 118.50 and 119.00 (both of which are supply levels). Thus we are expecting that any push or fall in JPY should be more connected with how strong the individual currencies in the pair are; not really how strong the yen is. Thus it becomes likely that while some JPY pairs would be rising across the next few days, others may be falling.

GBPUSD

Price Trend: Bearish

Following the consolidation of prices across the first two days of last week, a drop occurred the next day in line with our expectations. There have been several tests of the accumulation territory we have at 1.2400, but so far further decline has been reasonably opposed. With the trend being a downtrend for a number of GPB pairs, a breakdown is possible this week which could run into a minimum of 300 pips by the start of next year.

EURJPYDominant bias: Bullish

We expect heavy movement in JPY pairs across this week. Even in face of the trend being an uptrend for the EURJPY, it is possible for the continued weakness of the EUR to hamper this, thus cutting down the chances of the EURJPY picking up further gains. But then should prices stay above 121.00 (which is a demand zone) then we expect the trend to continue being an uptrend.

USDCHFPrice Trend: Bullish

In resemblance with the EURUSD, there was a bearish retracement in the USDCHF across the first three days of last week. But after this, the pair pushed up rising above 1.0300 (which is one important resistance level) only to finish below it. We are expecting the USDCHF to move up although it could face challenges in course of this. It is thus likely that the USDCHF may pull up to 1.0300 even as far as 1.0400 across the next few days.

For a long time now spanning into weeks, there has not really been a distinct trend, so it is safe to say the trend has been neutral. This way should prices manage to pull 200 pips up, it would become an uptrend. Also should prices fall below 1.0300 (a crucial support line), the trend could become a downtrend. As long as prices are in the region between 1.0300 and 0.0700, the trend will remain neutral.

GBPUSDPrice Trend: Bearish

By last week ending, a powerful pull back has disrupted the push up of the GBPUSD. Although for now, the bias is still a downtrend. With this in mind, any attempt by the pair to pull up may turn out brief so you should not just jump at rising prices. For an uptrend to be established proper, prices need to break past the distribution territory at 1.3000. And for this to happen, the pair must experience a strong pull up in the GBPUSD.

USDJPYPrice Trend: Neutral

The trend for this week even extending into next week is still neutral, the sideways movement in the pair would stop should there be a strong move in the pair either up or down. For a trend to be formed proper, it would be necessary for the pair to move above 118.00 where we have a significant supply level; or prices would have to push below 115.00 which is a demand level. Although prices look most likely to fall this week.

EURJPYPrice Trend: Neutral

There has been no distinct trend in the pair, even in face of the consolidation we have been seeing in the pair since the last month of last year. At present, the EURJPY is trying to push up, but the move so far has been really weak. It is likely these attempts to push up may turn out to be fakeouts if prices don't breach the supply zone located at 125.00. On the other hand, we expect the EURJPY to form a downtrend should prices fall below 120.00, a very crucial demand zone.

USDCHFPrice Trend: Bullish

The trend pushed downwards the previous week most particularly from January 3rd. Prices went on to finish below the resistance level located at 1.0200 making an impressive bounce back. The decline in the USDCHF last week challenged the existing uptrend. But for a solid bearish confirmation pattern to be formed in this pair, prices must break past the very critical psychological level located at 1.0000.

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